Schweppes to build new tomato puree plant in 2017

Published: 23 November 2017

Schweppes Zimbabwe says it is targeting to build an additional tomato puree plant in 2017 to boost its output, and to enhance its exports into the region.Currently, Schweppes Zim's exports of tomato puree into the region are at 20 percent.

Managing director Charles Msipa said the country was strategically located within the SADC region, a potential market the group intends to tap into.

Currently, Zimbabwe together with other SADC countries import tomato paste from China and Egypt to narrow the gap left by local producers.In 2015, Zimbabwe imported over 1 500 tonnes of tomato products according to data from the International Trade Center.

"Zimbabwe's location gives it a competitive advantage in the region. By 2018 we should be able to provide for the regional market.But for us to break into the SADC region, we might need to build another plant by next year," said Mr Msipa.

Best Fruit is a joint venture between Beit Bridge Juicing (BBJ) a subsidiary of Schweppes, which owns 70 percent of the business, and the Agricultural and Rural Development Authority (ARDA), which holds the remaining 30 percent.

The firm bought the processing facility from previous owners, Zagrinda and invested $3 million and raised its capacity.

"Zimbabwe being a member of the SADC, our tomato paste meet the rules of origin criteria under SADC Trade Protocol and will be exported to member states duty-free. This gives our tomato paste a competitive advantage over products originating from non-members like China," he said.

"We will initially target the domestic market to cut on imports then look at exports into the region," said Mr Msipa.

The whole of SADC region requires about 20 000 tonnes of tomato puree.But to meet both local and regional demand, Mr Msipa said the group would require to build an additional plant to complement production at Best Fruit, which has the capacity to process 24 000 tons of fruit annually.

The plant processes 4 000 tonnes of tomato paste every year.

Increased production will not enhance exports only but also cut on imports of such products into Zimbabwe. This will also form part of the firm's initiatives towards revitalising agro-processing industry and value addition as enunciated in the economic blueprint, Zim-Asset.
- BH24

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